Wavelet-based compression technology is the core strength of JPEG2000, which is designed to meet the growing application needs not addressed by the current JPEG standard. While offering state-of-the-art compression, JPEG2000 also offers unprecedented access into the image while still in compressed form. Thus, images can be accessed, manipulated, edited, transmitted, and stored in a minimal information form.

JPEG2000 supports a wide set of features, achieving in a single file format what the original baseline JPEG offers in 44 largely incompatible modes. JP2 is a feature-rich, flexible format that is striving to be an open standard by the end of year 2000.

JPEG2000 is a new wavelet-based image coding system for different types of still images (bi-level, gray-level, color, multi-component) with different characteristics (natural images, scientific, medical, remote sensing imagery, text, rendered graphics, etc.) allowing different imaging models (client/server, real-time transmission, image library archival, limited buffer and bandwidth resources, etc.) preferably within a unified system.

This coding system is intended to provide low bit-rate operation with rate distortion and subjective image quality performance superior to existing standards, without sacrificing performance at other points in the rate-distortion spectrum.

This standard will serve still image compression needs that are currently not served by the JPEG standards. For example, very low bit-rate, progression for the WWW, medical imagery, pre-press, etc. It is intended to complement, not to replace, the current JPEG standards. Indeed, this standard is expected to include an architectural context that will allow the previous standards to be used as desired on different tiles and/or components within a single image.

Source:
JPEG2000 requirements and profiles version 6.3 ISO/IEC JTC 1/SC 29/WG 1 N1803 July, 2000